How frequently should one review their financial plan?

Regularly reviewing a financial plan, at least on a semi-annual basis, is essential for maintaining its effectiveness and relevance to an individual’s changing circumstances. Life events such as job changes, significant purchases, or shifts in financial goals can have a substantial impact on one’s financial position. A semi-annual review ensures that adjustments can be made in a timely manner, allowing individuals to stay on track with their objectives and adapt to any new challenges or opportunities.

Additionally, financial markets and economic conditions fluctuate, so regular assessments help individuals respond to external changes that may affect investments or savings strategies. This proactive approach mitigates risks and helps optimize financial resources, highlighting the importance of staying engaged with one's financial planning process throughout the year. Regular reviews also promote financial literacy, leading to informed decision-making and better outcomes in achieving financial goals.